Federal Stafford Loan

Federal Stafford Loans are available to eligible students that have completed the FAFSA. The Federal Stafford Loan is divided into two parts 1) subsidized and 2) unsubsidized. The difference is that the subsidized portion, the federal government pays the interest on the loan while the student is in school (enrolled at least half time). The unsubsidized portion, the interest begins to accrue at the time of disbursement. You can choose to pay the interest as it accrues or allow it to accumulate. 

Qualifying students can receive up to $8500 in subsidized and $12,000 in unsubsidized loans, for a total of $20,500 every two semesters, i.e. fall/spring, spring/summer, or summer/fall. 

The interest rate for loans after July 1, 2006 are fixed at 6.8%. 

Borrowers receive a six month grace period after graduating, withdrawing from school, or if their enrollment drops below half time status. 

Total debt for all Federal Stafford Loans, including undergraduate loans is $138,500.